The FSA is reviewing the client money rules for insurance intermediaries and has published a Consultation Paper (CP12/20) containing its proposed changes to chapter 5 of the Client Assets sourcebook (CASS 5).
The proposed changes consider the use of the non-statutory trust, the introduction of a CASS 5 resolution pack and the segregation and placement of client money. CP12/20 also looks at changes to the distribution and transfer of client money and proposals on diversifying client money.
The changes to the regime that are taken up by the FSA will replace CASS 5 with a new CASS 5A. Comments on CP12/20 are welcome until 30 November 2012. A policy statement is expected to following in Q2 2013, although it is not currently anticipated that any new rules will take effect until 12 months after that date.